FEB2024 (A)

QUESTION 1A

i. An employee is required to keep all records pertaining to employment income for a period of 7
years, computing from the end of YA where tax return was submitted.√ Failure to keep record shall
be guilty of an offence and shall on conviction, be liable to fine of not less than RM300√ and not more
than RM10,000√ or to an imprisonment for a term not exceeding one year or to both. √
(4 √ X1/2 = 2 marks)

ii. Alan’ responsibilities as an employer (any two √ for employer;s responsibilities ):

✓ Employer need to file in form EA or EC√
✓ Required to give notice using Form CP22 to inform the IRB of the employment of a new
employee.√
✓ Need to notify the IRB using Form CP22A or Form CP22B regarding cessation of employment
✓ Submit Form CP21 to IRB if an employee is about to leave or intends to leave Malaysia for a period
of exceeding 3 months.
✓ Or any other possible answer

Zaki and Lutfi’s responsibilities as employees (any two √ for employees’ responsibilities):
✓ Submit his return to IRB (Form BE) not later than 30 April in the year following that YA√
✓ Inform IRB in the prescribe form (CP 600B) of any change of address within 3 month of the
change√
✓ Keep all the records pertaining to employment income for a period of 7 years.
✓ Or any other possible answer
(4√ X1 mark = 4 marks)
QUESTION 1B

YA Period of stay No of Resident Reasons

days Status/
Section
2018 15/4 – 07/08 115 Non-
Resident √
2019 23/09 – 13/12 82 Resident √ He was in Malaysia less than 182 days
14/12 – 22/12 9 S 7(1)(b) √ in YA 2019 √, and the period was
23/12 – 31/12 9 (TA) linked to YA 2020√ that consist of
91 182√ consecutive days inclusive of TA.
√
2020 01/01 – 05/01 5 (TA) Resident √ He was in Malaysia for at least 182
06/01 – 31/07 207 S 7(1)(a) √ days in YA 2020√
2021 07/03 – 15/05 25 Resident √ In YA 2021, he stayed in Malaysia for
16/05 – 05/09 113(TA) S 7(1)(c) √ more than 90 days√ and in 3 out of 4
06/09 – 12/09 7(TA) √ immediately preceding years of
13/09 – 31/12 110 assessment (YA 2018, 2019, 2020) √,
135 he was a Resident or stays in Malaysia
for at least 90 days. √
2022 01/01 – 13/02 44 Resident √ He was Resident √ in Malaysia for 3
S 7(1)(d) √ immediately preceding YAs (YA 2019,
2020 & 2021) √ and a Resident in the
following year √ (YA 2023)
2023 12/04– 30/10 203 Resident √ He was in Malaysia for at least 182
S 7(1)(a) √ days in YA 2023√
 (24 √x ½ = 12 marks)

SOLUTION 2

Khairil
Computation of Statutory Employment Income for the year of assessment 2023.
RM RM
Section 13(1)(a)
Gratuity (exempted)√ NIL√
Director fees (15,500+500+2,000+450) √ x100/89 √ x10√ 207,303
Interest subsidy (14,000√ – [300,000/400,000√ x 14,000√]) 3,500
Gift Voucher 1,000√
Reimbursement (servant) 8,500 √
Individual membership [4,500√ + (500√x10)√] 9,500
Scholarship (exempted)√ NIL√ 229,803
Section 13(1)(b)
Car (7,000/2)√ x 10/12√ x 50%√ 1,458
Driver (600x10) 6,000√
Semi furnished furniture (140 √ x 8√) 1,120 8,578
Section 13(1)(c)
House:
DV: (1,800 – 500) √ x 10√ = 13,000
OR 30% of Sec 13(1)(a) exclude share option √
30% x 229,803 = 68,941(OF)√
Which is the lower√; 13,000 x 8/10√ 10,400
GROSS EMPLOYMENT INCOME √ 248,781
Less: Allowable expenses
Repair and maintenance (3,500) √
STATUTORY EMPLOYMENT INCOME√ 245,281
(30 √ X 0.5 mark = 15 marks)
QUESTION 3A

Remuneration paid to ex-drug dependents is subject to a double deduction. Discuss briefly three (3)
conditions that must be fulfilled by the business for that purpose.

• The employee works on a full-time basis√

• The remuneration paid is RM <= RM4,000 per month √
• The employee is not a relative of the employer √
(3√ x 1 mark = 3 marks)

QUESTION 3B

Best Excellence Centre

Computation of Statutory Business Income for YA 2023
RM RM
Net profit as per SOPL 121,700√
Add: Revenue not included
Fees 2,000√

Less: Non-Business-income
Dividend Income 12,000√
Gain on disposal of the photocopy machine 8,000√ (20,000)
103,700
Add: Non-Allowable Expenses
Depreciation 8,500√
Salary, bonus and EPF:
Salary, bonus & EPF- Kamal Chin [48,000 + 4,000 + 10,000] 62,000√
Salary, bonus and EPF - Consultants Nil√
EPF- Consultants [15,000√ - (19% x 76,000 = 14,440) √] 560√
EPF- Clerk (disabled) [2,300√ - (19% x 13,000 = 2,470) √] Nil√
Repair and maintenance:
Kamal Chin’s wife’s car 7,000√
Repair of business premise leakage Nil√
Entertainment expenses:
Hari Raya gathering for staff and their families Nil√
Kamal Chin’s niece’s baby shower 1,400√
Legal fees (traffic offences) 1,200√
Bad debts:
General provision of bad debts 2,000√
Specific provision of bad debts Nil√
Advertising:
Advertising to promote business activities Nil√
Placement of signboard at business premise 2,600√
Interest on loan Nil√
Stationeries:
Personal supplies 900√
Business supplies Nil√
Donations:
Food contribution to pitiable families 2,000√
Donation to Rumah Anak-anak Yatim (approved institution) Nil√
Cash donation to public school library [Section 44(8)] Nil√ 86,360
 190,060

Less: Double deduction:

Salary & Bonus – clerk (disabled) (13,000)√√
Adjusted business income√ 177,060
Add: Balancing charge 6,500√
Less: Capital allowance (18,300)√
Statutory business income 165,260
Less: Business loss b/f (10,100)√
Net Statutory business income 155,160

(34√ x 0.5 mark = 17 marks)

(Total: 20 marks)
QUESTION 4A

In the event the spouse:

a) Is living together with the tax payer; and√
b) (i) Is not working (no source of income); or √
(ii) has no income to be aggregated with the tax payer,√

Spouse relief of RM4,000√ is available to the tax payer. An additional relief of RM5,000 would be
available in the event the spouse is a disable person√√.
(6√ X1/2 = 3 marks)

QUESTION 4B

Computation of Income Tax Payable for YA2023

Roslan Hanani
(RM) (RM)
s.4(b) Employment income 10,600X100/89x12m 159,000√
Part time lecture fees 1,500 X9 13,500√

s.4(c) Dividends and Interest

income
Dividends from investment NA Nil √
outside Malaysia (not remit)

Interest:
Bank Rakyat Exempted √ Nil
Bank in London Exempted √ Nil

s.4(d) Royalti and Rental

income
Royalty 55,000- 20,000 (exempt)√√ 35,000
Rental - shop lot(3,600X6) 21,600√
Quit rent(2/3 X 3600) (2,400)√
Repairs (4,500)√
Advertisement (initial) Nil√ 14,700√ 14,700
S4(e)pension - exempted√ NIL
S4 (f) other income - honorarium 15,000√

AGGREGATE INCOME√ 64,700

Indonesia Orphanage NA√
Laptop NA√

TOTAL INCOME√ 64,700 172,500

Less: Relief
Personal relief 9,000 √ 9,000 √
Medical Expenses for parent
- nursing home fees na√
- Roslan’s Father (RM1,500 -supporting document _RM1,300 only) 1,300√√
- Hanani’s mother 500√
Serious disease- Izan’s special treatment for learning disability 4,000√
Basic Supporting Equipment - Wheel Chair 3,500√
Child Relief:
- Izan 6,000√
- Zaiton 8,000√
-Aina na√
-Roza 2,000√
EPF & Insurance 7,000√
Education Insurance 1,500√ 3,000√
Lifestyle: Roslan Hanani
Online books and journals 1,200 1,750
Monthly bills on internet subscription 1,500 - 2,500√ 1,750√
Purchase of laptop for Roza 3,300 -
Sports Equipment:
Sports Equipment and gym membership 355
Registration fees in sports competition 150 500√

CHARGEABLE INCOME√ 26,900 150,750

Income tax payable:

On the 1st 20,000 150√
On the next 6,900 @3%√ 207
357
On the 1st 100,000 9,400.00√
On the next 50,750@25%√ 12,687.50
22,087.50
Less: Rebate-zakat (49) (10,000.00)√
Rebate (400)√
NET INCOME TAX PAYABLE√ NA 12,087.50
(44√ x ½ mark = 22 marks)
(Total: 25 marks)
QUESTION 5A

A. NO agriculture allowance shall be made to a person for a YA in relation to an asset:

i. if the asset is transferred and was not use for the purpose of the business√ within
one month before transfer√
ii. if at the end of the basis period, he was not the owner of the asset or it was not in use
for the purpose of the business√
(3√ x 1 mark = 3 marks)

QUESTION 5B

B. Factory
RM
Cost of demolishing old industrial building Nil√
Construction cost 2,200,000√
Architect fees 60,000√
Cost of internal road and drainage system 400,000√
Wiring and plumbing 50,000√
Aggregate cos 2,710,000

10% Rule
Since the office (NIB) occupied 15%√, is more than 10%√ of the total built up area,
therefore the qualified QBE is = 85% x RM2,710,000= RM2,303,500.

YA RM
2021 √ QBE (85% x 2,710,000) 2,303,500 √

- IA (10%)√ (230,350)
- AA (3%)√ (69,105)
RE 2,004,045
2022 - AA (3%) (69,105) √
RE 1,934,940
2023 - AA (3%) (69,105) √
RE 1,865,835

Sealing machine

YA RM
2021√ QPE: 110,000 √
Less: IA (20%√) (22,000)
AA (14%√) (15,400)
RE 72,600
2022 Less: AA (14%) (15,400) √
RE 57,200
2023 Less: Disposal value (70,000) √

BC 12,800 √

Apply 10% rule√ : 10% x 110,000 = 11,000 vs 10,000√. COPS is less than
 10% of the Aggregate cost, therefore COPS is part of the sealing machine cost. √

*QPE RM
Cost of machine 95,000√
Installation cost 5,000√
COPS 10,000√
Aggregate Cost 110,000

Motor Vehicle

Monthly installments = RM147,600√-RM36,000 √

36 months√
= RM3,100

QE is restricted to RM100,000

YA
2022√ QE: Deposit RM
36,000 √
Installment (3,100 x 10) 31,000 √√
67,000
Less: IA (20%√ x 67,000) (13,400)
AA (20%√ x 67,000) (13,400)
RE 40,200
2023 QE: (3,100 x 12 = 37,200) (Restricted to) 33,000 √
Less: IA (20% x 33,000) (6,600) √
AA (20% x 100,000) (20,000) √
RE 46,600

(38√ x 1/2 mark = 19 marks)